Demand recovery on a low base; on-highway share set to rise: 1Q EBITDA ahead; rising share of competitive TBR/PCR segments to drag ROEs; maintain Neutral

研报英文原文证据摘录

Demand recovery on a low base; on-highway share set to rise: 1Q EBITDA ahead; rising share of competitive TBR/PCR segments to drag ROEs; maintain Neutral

Global Markets Research

Balkrishna Industries BLKI.NS BIL IN 30 July 2026

EQUITY: AUTOS & AUTO PARTS

Demand recovery on a low base; on-highway share set to rise Rating Remains Neutral

Target price1Q EBITDA ahead; rising share of competitive TBR/PCR Reduced from INR INR 2,410segments to drag ROEs; maintain Neutral 2,553

1QFY27 EBITDA ahead of our and consensus estimates Closing30 July 2026price INR 2,307

• BIL’s 1QFY27 revenue at INR34bn (24% y-y) was ~10%/11% above our/consensus estimates.

Implied upside EBITDA margin was below at 20.6% (Nomura/consensus 21.6%/21%; Fig.1), with EBITDA of +4.5%

INR7bn (7% y-y), 5%/9% above our/consensus estimates. This was mainly due to higher other

Market Cap (USD mn) 4,661.3

exp/sales at 24% (Nomura 23.1%) while RM/sales at ~50.9% was inline. Volumes were at ADT (USD mn) 6.9

93.8k tons (+16% y-y); ASPs were at INR363k, 8% q-q (Nomura 354k). Thus, PAT at

INR4.3bn was up 50% y-y (Fig.2). Relative performance chart

• Highlights: Volume growth remained strong in India (+32% y-y, ~40% of volumes) followed by

EU (+16% y-y), while North America was -16% y-y.

• Management commentary: off-highway tyre (OHT): Demand remains stable in the EU,

while India is doing well. Inventory is normal and not much pre-buying in 1Q. Remains

optimistic on growth for India and the US, and expects overall growth momentum to sustain.

Sees some challenges from weak India monsoon, adverse EU weather and container

availability. On-highway: Seeing good response and ramp-up from 2Q onwards. Product

differentiation will be a key driver. Costs: Expects 5% further cost increase in 2Q, will need